| Maine:
Competing with incentives, real estate costs
Plants, Sites and Parks Magazine
January 2003
Maine continues to draw many high-technology companies, large and small. According
to MESDA, Maine's software and information technology industry trade association,
91 of every 1,000 private-sector workers in Maine are employed in software and
IT positions. In addition, employment growth rates in these industries are more
than 10 times greater than the average for other industries.
A
recent $20 million research and development bond is
one way Maine is committed to its high-tech economy.
Funding to the university system is ongoing, and there
is the formation of the Maine Technology Institute,
which will invest more than $10 million a year into
promising new technologies.
Maine
also offers several tax incentives to encourage the growth of technology companies,
including the Research Expense Tax Credit, R&D Super Credit, High Technology Investment
Credit and sales tax exemptions. In
the spring of 2003, Wal-Mart Stores Inc. will begin construction of a $40.5 million,
485,000-square-foot New England distribution center in Lewiston. According to
Rollin Ford, senior vice president of logistics for Wal-Mart, Maine was chosen
after a six-month search throughout New England for a number of reasons—a competitive
incentive package being one. Greg
Mitchell, director of development for the City of Lewiston, says that Wal-Mart
was offered a "fair and reasonable proposal because we knew we had competition
from other states in New England." In fact, the incentive package offered totaled
$18 million. The city of Lewiston is providing the necessary water and sewer upgrades,
free land and a tax-increment financing package.
| New
England: Small states with strong high-tech sectors Plants,
Sites and Parks
January 2003 We
might be tired of reading about it and discussing it, but the fact is that the
terrorist attacks on Sept. 11, 2001, took a tremendous toll on all regions of
the United States. Not all the news was bad, however. Some regions, especially
New England, actually gained somewhat from the tragedy that struck New York City. New
England has had its share of challenging economic issues. Already-high property
taxes and the lack of large, available tracks of land on which to expand or build
is a concern for many businesses. And agricultural and manufacturing employment
began a steady decent in January 2001. All but Rhode Island showed an increase
in unemployment rates. Massachusetts' rate was up a full 1.1 percent over last
year, compared with an increase of 1.3 percent nationwide. The labor force in
all New England states have increased. MORE |
The state
of Maine will reimburse Wal-Mart for personal property tax on machinery and equipment
and 50 percent of employee state income tax withholdings for 10 years. With
130 acres needed for the first phase and 400,000 square feet for the second phase,
Wal-Mart also chose Maine because of available land. "They knew transportation
costs would be a little higher, but our incentives and the land would balance
out those costs," Mitchell says. Another
factor, Mitchell notes, was the available labor force: "They are expected to employ
350 and that will grow to 450. The workforce need is high, so Wal-Mart needed
to feel comfortable that the labor force is here. And the labor force does match
their needs." Ford
says, "We are delighted to have the opportunity to enhance our presence in Maine
as a partner in both commerce and community." |
